Skip to content
Search
AI Powered
Human content, AI powered search.
Latest Stories

VAT businesses must use Making Tax Digital filing from November

VAT businesses must use Making Tax Digital filing from November
Kiran Paul
By Kiran PaulOct 04, 2022
Kiran Paul
See Full Bio

Businesses will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns, the HMRC has reminded.

By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.

HM Revenue and Customs (HMRC) said more than 1.8 million businesses have already signed up to the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.

In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.

If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.

“Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business,” Richard Fuller, Economic Secretary to the Treasury, said.

“I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”

If a business hasn’t already signed up to MTD or started using compatible software, they must follow these steps now:

  • Choose MTD-compatible software – a list of software, including free and low-cost options, can be found on GOV.UK.
  • Check the permissions in the software – once a business has allowed it to work with MTD, they can file VAT returns easily. Go to GOV.UK to learn how to do this and search 'manage permissions for tax software'.
  • Keep digital records for current and future VAT returns – a business can find out what records need to be kept on GOV.UK.
  • Sign up for MTD and file future VAT returns using MTD-compatible software – to find out how to do this, go to GOV.UK and search 'record VAT'.

If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt.

A business can check if they can apply for an exemption from MTD on GOV‌‌‌.UK if it is not reasonable or practical for them to use computers, software or the internet. HMRC will consider each application on a case-by-case basis.

All new businesses will automatically be signed up for MTD while registering for VAT through HMRC’s new VAT Registration Service (VRS).

hmrcmaking tax digitalvat

Related News

Sainsburys-Local-web.jpg
Supermarket

Sainsbury’s extends Aldi price-match campaign to 800 convenience stores

TRIP brings viral Magnesium gummies to UK
Product News

TRIP brings viral Magnesium gummies to UK

More for you

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.

With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors.Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.

Keep ReadingShow less
Post Office cash deposits and withdrawals
Post Office, DPD partners to rollout ‘Click and Collect’ services
Post Office, DPD partners to rollout ‘Click and Collect’ services

Most Horizon scandal victims say it 'destroyed relationships'

Around two thirds (65 per cent) of people affected by the Horizon scandal have said it impacted their family and relationships, while many respondents report estrangement from family members because of the scandal, according to a paper published today (1) by the Post Office Horizon IT Inquiry’s listening project.

The paper title In Your Own Words illustrates the various challenges the Horizon scandal has inflicted on people’s relationships, with respondents reporting the breakdown of relationships, estrangement from family members, and acute loneliness. Some adult children of former sub-postmasters shared how they experienced bullying, financial issues and mental health struggles because of the scandal. Others reported how their parents have died before knowing the truth about the Horizon scandal, which magnified their grief.

Keep ReadingShow less
Wholesalers give cautious welcome to Reeves' budget

iStock image

Wholesalers give cautious welcome to Reeves' budget

The wholesalers have welcomed several measures announced in Chancellor Rachel Reeves's first budget but have raised concern the increase in National Living Wage and Employers National Insurance contributions will add an estimated £110 million in direct wage costs to the wholesale sector.

The wholesalers also pointed out that the lack of clarity on business rates reform means that wholesalers operating large physical premises remain disproportionately impacted by high rates. Without meaningful reform and a set timeline, these businesses will continue to shoulder a heavier burden than those in sectors with minimal property overhead.

Keep ReadingShow less
New benefits scheme for Fed members

New benefits scheme for Fed members

The Federation of Independent Retailers (The Fed) has launched an exclusive benefits scheme for Fed members.

Called FedPlus, the scheme offers a range of discounts on a host of goods and activities, from everyday purchases to luxury products.

Through FedPlus, Fed members will have access to a range of fantastic money-saving benefits covering a wide variety of areas – from health and well-being to home and car essentials, and from food and drink to fashion and tech, entertainment, travel and experiences.

There is a Savings Calculator to show how much has been saved, based on monthly or annual spending, on a range of everyday categories. The Savings Calculator will generate a personal savings total and provide links to the individual deals.

Launching FedPlus, National President Mo Razzaq said: “In my inaugural speech at the Fed’s Annual Conference in June, I spoke about the importance of providing more benefits to help members make money, save money and make business easier.

“Just four months on, we are delighted to bring you FedPlus. This is an exciting new addition to our ever-growing list of member benefits which brings you quick, at your fingertips access to several offers across a wide range of categories so the money in your wallets and purses goes even further in these financially strained times.”

Members can access the scheme through thefedonline.com website. It went live yesterday (October 31).

FedPlus is managed and run for the Fed by Parliament Hill Limited, which has been providing benefit management solutions for membership organisations for the past 20 years. Top name companies offering discounts include Virgin Experience Days, Nuffield Health, Hotpoint, Halfords, Boots, Curry’s and EE.

Tom Sparke, joint managing director and client services director at Parliament Hill, said: “We are looking forward to working with the Fed to assist them in the fantastic support that it provides for its members.

“The Fed has a strong commitment to supporting its members, which aligns with the Parliament Hill ethos of placing the needs of our clients’ members at the heart of what we do.”

Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less